Not a bad idea.Now I feel only we could convince all the owners to rent at the same prices....
Not a bad idea.
If every owner who has used a broker emailed that broker that “With dues rising year after year, 2019 being especially painful, I will be exploring other options to rent my points out until your compensation for points reflect more accurately the increasing costs. Please do reach out when you have a plan in place to address the current disparity.”
I imagine the brokers will have to re-evaluate their offerings.
As brokers go up, so will the market.
Not a bad idea.
If every owner who has used a broker emailed that broker that “With dues rising year after year, 2019 being especially painful, I will be exploring other options to rent my points out until your compensation for points reflect more accurately the increasing costs. Please do reach out when you have a plan in place to address the current disparity.”
I imagine the brokers will have to re-evaluate their offerings.
As brokers go up, so will the market.
Already did this! This past week, I rented 200 banked points but held back the current points (by declining to fill a second reservation) and told them "with annual dues increasing so much, I hope to see an increase in owner compensation." Told two different staffers. They both said, "It depends on the boss blah-blah." Friendly interactions...but it's important they hear the whys.I'm on it! Anybody else?
OTOH, brokers can't offer rentals if they don't have owners willing to settle for their rates. It has been more than a year since they raised their rates. Disney room rates have gone up significantly in the same period.Brokers probably won't raise the amount they pay owners until after they see Disney raising hotel room prices and reducing discounts. Don't think enough owners will stop using the brokers to force a change before that happens.
Brokers can't pay owners more unless their customers are willing to pay the higher prices. A critical mass of their customers will need to see enough of a differential to offset the unfriendly cancellation policy and lack of housekeeping. Don't think they are there yet. YMMV.
OTOH, brokers can't offer rentals if they don't have owners willing to settle for their rates.
I am also waiting for the brokers to up their rates. There is no way I can accept $14/pt. renting any of my points through them.
. . . IF you rent points through a broker, don't you have to "pay taxes" on that transaction? Or at least you must notify the IRS and count this as Income??? That adds another layer of losing out on your $... Not sure if this is true or not...
. . . the renters don't pay taxes on the rental. So . . . IF you have to go through IRS, and taxes, you will get less than the $13/point... NO way I would rent less than $18-19/point.
Thanks..checking this out now..You can see the proposed budget for the resorts that you own on the member website. Look under Condo Association News & then Meeting Notices and Information.
If you want to see a listing of all the resorts' proposed 2019 dues, head over to DVCNews.com
Yes, it is true. You are required to report it to the IRS. You need to count the money you receive as Rental Income and file a Form 1099-MISC.
You can deduct PART of the membership fees, since you can deduct operating expenses and property taxes, but you cannot deduct the cost for 'improvements' or other things.
You can deduct the INTEREST from any loan that you have on the property, but you cannot deduct the purchase price to offset the Rental Income.
As a CPA I feel compelled to clarify some statements. Please do not take any offense as I'm not trying to be argumentative or point out mistakes. However, some people who read these boards could use information they've learned here and I want to ensure their making decisions on accurate info.
Agreed it's true that rental income must be reported whether a broker is used or not. However, Form 1099-MISC is the form a broker would send to an owner. The owner reports the rental income and expenses on Schedule E.
This is incorrect. Dues are a required expense for the owner and therefore fully deductible from rental income.
Correct about the interest, not the rest. Contracts have an expiration date, and therefore the owner's right to use diminishes each year. This is similar to depreciation and can most certainly be used to offset rental income.
Disclaimer: This is a very general overview of some topics pertaining to rental income and should not be construed as tax advice. I would highly recommend that any owner who rents and isn't very familiar with tax laws seek help specific to their situation from a licensed tax professional. Preferably one with experience with timeshare rentals.